Maintain short positions as the negative bias is picking up momentum. The FKLI formed a “downside gap” to settle the latest session 40.5 pts lower at 1,491.5 pts, breaching below the important 1,500-pt support level. The breakdown from the support level is a bearish price signal – as it was the support level of the multi-year sideways move that started in Jul 2014. While the RSI is flashing out an oversold reading, in the absence of a price reversal signal, we make no change to our negative trading bias.

As the bulls are still not able to assert control over the price trend, we advise traders to stay in short positions. We initiated these at 1,548.5 pts, the closing level of 12 Feb. To manage risks, a stop-loss can be placed at above 1,529.5 pts.

The immediate support is revised to 1,475 pts, near the low of 22 Dec 2011, followed by 1,450 pts. On the other end, the immediate resistance is now pegged at 1,500 pts, the price point from the latest candle. This is followed by 1,510 pts, near the latest high

Source: RHB Securities Research - 25 Feb 2020